Blackstone pulled out of bidding for Dell amid concerns about the personal-computer maker's finances and the worsening outlook for global PC sales.
In a letter to Dell's board, Blackstone cited an "unprecedented" 14 per cent market decline in PC volume in the first quarter, according to a statement yesterday.
The world's biggest buyout firm made a non-binding offer to acquire Dell last month, rivaling a US$24.4 billion joint bid by founder Michael Dell and Silver Lake Management, the largest proposed leveraged buyout since the financial crisis.
Blackstone's enthusiasm for the transaction waned as global PC sales fell the most on record last quarter.
Blackstone had assembled bankers and buyout engineers, as well as dozens of potential co-investors and consultants, near Austin, Texas, since April 8 to grill Dell's executives about divisions and model its prospects, people familiar with the situation said.
Blackstone cited "the rapidly eroding financial profile of Dell" and said the market decline in PC volume was "inconsistent with management's projections for modest industry growth".